Author: Caleb Newquist

Founding editor, Going Concern.

Vault’s New Accounting 50 Ranking Has Plenty of Surprises

This year our friends and Vault took a different approach to this year’s ranking for accounting firms. Rather than focus primarily on prestige of a given firm, many working in the industry voiced other aspects of their firms that were more important.

Vault Finance Editor Derek Loosvelt said in a press release, “In the past, our primary accounting ranking was based solely on prestige, but when we asked accounting professionals what the most important determining factor was when choosing an employer, they told us, overwhelmingly, that firm culture was most important.” How important??

“In fact, 36 percent of all accounting professionals we surveyed told us that firm culture was most important, while only 11 percent cited prestige as most important. Vault created its new ranking with this feedback in mind.”

But don’t fret, prestige whores – Vault’s prestige rankings will be out next week and we’ll bring those rankings to you, as well as their Quality of Life rankings. But for now, let’s get to the pecking order for the inaugural Best Firms to Work For ranking. We’ll bring you the top 25 for now and present the next 25 in a separate post. Plus, we’ll dig into the gory details in future posts. But that’s enough talk for now:

1. Deloitte – New York, NY
2. PricewaterhouseCoopers – New York, NY
3. Rothstein Kass – Roseland, NJ

4. Marcum – Melville, NY
5. Dixon Hughes – High Point, NC
6. Moss Adams – Seattle, WA
7. Elliott Davis – Greenville, SC
8. Friedman – New York, NY
9. Kaufman, Rossin & Company – Miami, FL
10. Cherry, Bekaert & Holland – Richmond, VA
11. WithumSmith+Brown, PC – Princeton, NJ
12. Berdon LLP – New York, NY
13. Reznick Group, P.C. – Bethesda, DC
14. Eide Bailly LLP – Fargo, ND
15. Goodman & Company, LLP – Virginia Beach, VA
16. CBIZ & Mayer Hoffman McCann P.C. – Cleveland, OH
17. Armanino McKenna – San Ramon, CA
18. SS&G Financial Services, Inc. – Cleveland, OH
19. ParenteBeard LLC – Philadelphia, PA
20. Schenck Business Solutions – Appleton, WI
21. Ernst & Young LLP – New York, NY
22. KPMG LLP – New York, NY
23. Grant Thornton LLP – Chicago, IL
24. BDO Seidman LLP – Chicago, IL
25. McGladrey & Pullen LLP/RSM McGladrey Inc. – Bloomington, MN

So the biggest surprise, from where we stand is Rothstein Kass lofty position in the top three. Not because we don’t suspect that they are a fine firm but it was simply unexpected. In fact, the top ten is full of surprises. Of the top ten in the list above, only Deloitte and PwC appear in the top ten in Inside Public Accounting’s Top 100. The obvious message here is – Bigger is not necessarily better.

And that particular premise is most obvious as we see two Big 4 firms – E&Y and KPMG – and three other mega firms – GT, BDO and McGladrey – rounding out the top twenty-five.

There are lots of familiar names in the top twenty-five so feel free to comment on any of them and where they fall on the pecking order.

Accounting Firms Rankings 2011: Vault Accounting 50 [Vault]
The New Vault Accounting 50 [In The Black/Vault]

Can My Firm Force Me to Change Brokers Even Though There Are No Independence Conflicts?

Today in accountant anxiety, a new Big 4 audit manager is perplexed as to why the firm is requiring the movement of their brokerage accounts, which on the surface, don’t result in any independence conflicts.

Have a question about your career? Is your favorite gridiron powerhouse affecting your work? Concerned that you may be allergic to your job? Shoot us an email at advice@goingconcern.com and we’ll help alleviate your problems.

Back to our muddled manager:

I’m a new audit manager at a Big 4 firm. As a new manager, my firm is requiring me to move all of my brokerage accounts (even those for which I’m the trustee but have no beneficial interest in) to a firm approved by the company and which participates in their daily transaction import program so they can keep daily track of all of my holdings. How is this legal? I’m not allowed to do business with a brokerage firm of my choice, even when there are no independence conflicts? Doesn’t this violate some law or something!?!?! Advice please!


Frankly, we’re a little surprised that you’re surprised about your firm’s requests in this matter. After all, you’re a manager. In the audit practice. We realize it’s been awhile since you’ve cracked an audit textbook but we’re curious if you’re delegating your annual independence refresher to a lowly staff because you can’t be bothered with it.

As you may recall, audit firms have to be independent in fact and appearance. Your brokerage accounts – both your personal and the accounts that you serve as a trustee – are a huge risk to your firm’s ability to maintain that independence. Your personal accounts are a no brainer – a firm simply cannot have anyone with assets with a broker that your firm has some sort of professional relationship with that could be perceived as conflict of interest.

As far as the accounts that you serve as the trustee for – Wiktionary defines trustee as follows:

A person to whom property is legally committed in trust, to be applied either for the benefit of specified individuals, or for public uses; one who is intrusted with property for the benefit of another; also, a person in whose hands the effects of another are attached in a trustee process.

So in other words, you are legally obligated to invest on behalf of the beneficiary in their best interest. This could possibly put you in direct conflict to act in a manner that would risk the independence of your firm.

And as everyone knows, an audit firm’s reputation as an independent third party that provides an objective opinion is paramount to the industry. Whether they are truly independent is a matter that Francine McKenna would be happy to take up with you on any day of the week but all the firms have a platoon of attorneys and other professionals that monitor the risk of independence violations for their respective firms constantly.

And as long as you’re an employee of the firm, the firm’s interests will trump yours. We suggest paying closer attention at your next ethics training.

Accounting News Roundup: Deloitte Makes London Its Legal Home; Estate Tax ‘Dithering’; Koss’s Comp Jumped Last Year | 09.21.10

Deloitte Touche Tohmatsu quits Swiss system to make UK its new legal home [The Guardian]
“With zero fanfare, Britain has gained a multinational. The global accountancouche Tohmatsu has quietly shifted its legal registration from Switzerland to London, flying in the face of threats by other City firms to flee the Square Mile.

The firm, which has 169,000 staff around the world and is vying with PricewaterhouseCoopers for the title of the world’s biggest professional services group, is thought to have moved because of legal controversy surrounding its previous status as an obscure Swiss entity known as a verein – a membership structure originally intended for sports clubs, voluntary organisations and unions.

The change – which became effective over the summer but was not announced publicly by Deloitte – has little tax implication for the Treasury because Deloitte’s decentralised structure means taxes are paid by its member firms on a country-by-country basis. But it amounts to a vote of confidence in English corporate law over Switzerland’s regime.”

H.P. Settles Lawsuit Against Hurd [NYT]
“A fierce and public feud between Oracle and Hewlett-Packard, two of the world’s largest technology companies, has ended after all of two weeks.

On Monday, the companies announced a settlement to a dispute that centered on Oracle’s hiring of Mark V. Hurd, the former chief executive of H.P., as a president. H.P. sued Mr. Hurd this month, claiming he would violate agreements to protect H.P.’s secrets by taking on such a high-level role at Oracle. The parties declined to reveal details about the settlement but said Mr. Hurd would protect H.P.’s confidential information.

However, in a filing with the Securities and Exchange Commission on Monday, H.P. said it had modified its separation agreement with Mr. Hurd. He effectively waived about half the compensation owed him. Mr. Hurd agreed to give up his rights to the 330,177 performance-based restricted stock units granted to him on Jan. 17, 2008, and to the 15,853 time-based restricted stock units granted on Dec. 11, 2009.”

FinancialForce gets jiggy with iPad [AccMan]
FinancialForce snags Life Champions from Sage with the lure of the iPad: “Field agents will be equipped with iPads and will record new opportunities directly in Salesforce CRM. Credit card payments can be processed on the spot and transactions seamlessly created in FinancialForce Accounting.”

Tax Preparer Who Threatened Prosecutor Is Sentenced to 3 to 6 Years [New York Law Journal]
“A tax preparer who sent threatening letters to a Manhattan assistant district attorney who had twice prosecuted him was sentenced Friday to three to six years behind bars.

Prosecutors arrested Jack Chang, 55, last summer after Gilda Mariani, the chief of the money laundering and tax crime unit in the district attorney’s office, received two ominous letters. One was addressed to her husband at her home and contained a white powder that turned out to be cornstarch. The other was delivered through interoffice mail.

Both depicted a tombstone with Mariani’s name and contained virtually the same message: ‘I finally got my 9 mil gun and I am insane, you are responsible for my insanity and I will make sure that you get at least one for each and every year I spent incarcerated.’ “


Caron: The Costs of Estate Tax Dithering [TaxProf Blog]
“President Obama was widely criticized for ‘dithering’ over the decision of whether to add more troops in the Afghanistan War. Yet Presidents and Congresses over the past decade escaped similar opprobrium for ‘dithering’ in the face of the long-scheduled one-year repeal of the estate tax beginning January 1, 2010, to be followed by the reinstatement of the tax on January 1, 2011. Although the “smart money” agreed after the passage of the Bush tax cuts in 2001 that the Administration and Congress would never allow the repeal-reinstatement scenario to play out, that is precisely where we now find ourselves.”

Hiring of town accountant upsets group [Seacoastonline]
They’re mad as hell and they’re not going to take it any more.

Pay package increases for Koss CEO [Milwaukee Journal-Sentinel]
“Michael Koss, the top executive at Koss Corp., received a 41.6% boost in his pay package last year, the same fiscal year that an embezzlement of about $34 million was discovered at the company, new documents filed with regulators disclosed.”

PwC’s Other New Color: Green(er)

Newly autumnal-hued PwC still has nature on the brain, this time reflecting on the kick-ass job they did by reducing their carbon footprint 20% since FY07.

For those of you scoring at home (read: Al Gore) that’s two years ahead of schedule.

Through a two-fold strategy, consisting of solutions around workspaces, air travel and commuting, as well as through the engagement of its people to make behavior changes, the firm has reduced its carbon emissions by more than 62,000 CO2 metric tons since FY07, its baseline emission levels.

Being a shameless tree hugger, we applaud the efforts of PwC and also KPMG who announced the reaching of their greeny goals – also ahead of plan – back in July.

However, the thing we’re a little skeptical about are the goals that each firm set for themselves. If they are blowing these carbon emission reduction targets out of the water and ahead of schedule it seems like they may have set the bar a little low. You figure that if you throw some recycle bins in the common areas, encourage more video conferencing and replace all the old light bulbs with the long-life version, you’re already ahead of the game.

PwC did a good job at detailing how they’ve been recognized for their efforts but they still remain vague about any future plans to continue their efforts:

“At PwC we take an integrated approach to reducing our waste, emissions, and discharges by elevating our green efforts and embracing new business practices,” said Shannon Schuyler, corporate responsibility leader, PwC. “We will continue to work toward sustaining the reduction we have already made, as well as partner with our experts in the S&CC practice to set new goals and targets in the future. To us, supporting a healthier and more sustainable environment is part of being a responsible leader.”

KPMG, on the other hand, was very specific about their efforts and what they had planned for the future including the Living Green Teams (with uniforms), recycling laptops and taking a stab at this paperless audit idea.

Granted, getting serious about reducing emissions is something that has only been sexy for the last 2-3 years so maybe the firm will ratchet up the goals, along with detailing specific measures, over the long-term.

PwC Meets 20 Percent Carbon-Reduction Goal Two Years Ahead of Schedule [PR Newswire]

NFL CFO Sick of Working for a Shrewd, Egotistical Organization; Returning to Goldman Sachs

Two years working for Roger Goodell must have been pure hell, compared to reporting to Lloyd.

Chief Financial Officer Anthony Noto is leaving the NFL after two years to return to Goldman Sachs.


Tony will be slumming it in IBD as the co-head of the Global Media Group. The NFL is cool with it though; they understand that not everyone is cut out for the big leagues. The good news is they’ve still got a Team Jehovah alum heading up the Finance Department:

The league said Monday that Eric Grubman will oversee the finance group at least until the end of collective bargaining negotiations with the NFL Players Association. Grubman is executive vice president of business operations and led the league’s finance operations when he joined the NFL in 2004.

NFL CFO Anthony Noto returning to Goldman Sachs [AP]

The Path to CFO: Is the CMA Credential Just as Important as the CPA?

Many of you soldiering in public accounting have aspirations of one day achieving the pinnacle of many a numbers junkie’s career – Chief Financial Officer. You may think that becoming a CFO will mean hobnobbing with other C-suiters, first-class flights and access to exclusive swing joints but in all likelihood, it will consist of long hours, political maneuvering and maybe burning a few bridges.

While there are many paths to ascending to such a heralded position, one has to wonder if the skill set obtained in public accounting will really prepare you for all the demands and headaches that will inevitably come with a CFO position.

Because so many accounting grads get their start in public accounting, one ofobtaining the CPA credential. There’s no question that obtaining your CPA is a must for anyone that intends on spending a significant portion of their career in public accounting and little debate about the advantage of having those three letters on your résumé when you start looking outside public.

Tthe timing of that move may determine what kind of path you have ahead of you in order to land that coveted CFO gig. If you manage to stick out life in public until partner or in some cases the director or senior manager level the path is more clear. You may jump right into it immediately or you assume a position that reports to the current CFO and be groomed to assume the big chair at the appropriate time.

But what if you’re just starting your career and you’re fed up with public already? Or what if you’ve gotten laid off and you took a job in private. Are your dreams crushed at this point? What’s a wannabe CFO to do?

Speaking with John Kogan, CEO of Proformative, an online resource for finance, accounting and treasury professionals, obtaining the Certified Management Accountant credential is something that often gets overlooked.


“It’s the Rodney Dangerfield of finance certifications,” John told GC, “it doesn’t get enough respect.” The argument for today’s CFOs to have a CPA are being made and statistics have shown that more and more CFOs are, in fact, CPAs. The most recent data we can find shows that in 2009, 45% of Fortune 1000 CFOs were CPAs, up from 29% in 2003.

However, the viewpoint of “Warren Miller” in the comments of Francine McKenna’s guest post at FEI Blog on the subject, is that accountants usually make terrible CFOs:

[A]ccountants tend to make lousy CFOs because (a) they see everything as an accounting problem, (b) their ignorance of finance AND of human nature (where incentives are concerned) can be breathtaking, (c) they look backwards, and (d) they are conflict-avoiders. If accountants wanted to deal with the ambiguity of the future, they’d have never become bean-counters.

In addition, most accountants LOVE “rules.” They avoid conflict by hiding behind rules. They are go-along/get-along people. I’m fond of saying this: “If accountants had been running our country in 1776, we’d still be working for the King.”

So if the gamut of accountants are ignorant about finance matters, does the CMA provide a bridge to closing that knowledge gap? John Kogan thinks so, “The CMA designation wants to be the ‘CPA’ for finance professionals,” he said, “but it’s so far from being that.”

When you look at the two sections of the CMA exam on the Institute of Management Accountant’s website, you certainly get the impression that the CMA could be the “CPA for finance professionals” based on the curriculum:

PART I – Financial Planning, Performance and Control
• Planning, budgeting, and forecasting
• Performance management
• Cost management
• Internal controls
• Professional ethics

PART II – Financial Decision Making
• Financial statement analysis
• Corporate finance
• Decision analysis and risk management
• Investment decisions
• Professional ethics

So why isn’t the CMA a more coveted credential? John Kogan claims it’s due to poor marketing on the IMA’s part, “The CMA [credential] has similar requirements, not identical but similar, and they don’t enjoy the reputation of the CPA,” John said. “The CMA is getting its butt kicked because it doesn’t market itself well.”

You can easily make the argument that the AICPA has the distinct advantage of partnering with the Big 4 – firms that’s primary purpose is to serve as CPAs – on marketing and promotional efforts while the IMA has no apparent equivalent.

That being said, our recent conversation with IMA Chair Sandra Richtermeyer shed some light on the careers that are available for accountants moving into a financial role that the CMA designation complements well. She was of the notion that the CMA is simply not about cost accounting and John Kogan agrees, “I think anyone who knows anything about [the CMA] knows that the [designation] is broader than that, it’s just that very few people know what the heck it’s about,” he said. “Without a doubt, the skills that the IMA are teaching and certifying are corporate finance skills.”

If you consider yourself to be on the path to CFO Rockstar, maybe you have the CPA locked up but what’s next? Having the CPA credential may make you an attractive candidate on paper but it’s won’t guarantee success with the wide range of knowledge that CFOs need. So, while it may not hold a candle to the CPA in terms of prestige, the skills and knowledge that fall under the CMA are essential for any successful CFO.

Compensation Watch ’10: Is Anyone at KPMG Getting Impatient?

It’s bad enough that KPMG is the last of the Big 4 to announce their compensation numbers.

But here’s the real problem Klynveldians – now that the Fighting Irish have blown two big games, two weeks in a row, to two Michigan rivals, John Veihmeyer is desperate for a Lou Holtz pep talk which means watching the old man on TV. This also means suffering through the shallow diatribes of the horrendous Mark May which we don’t wish upon anyone. But that’s a whole other matter.

What concerns us is whether J. Veih manifests his frustration by going back on his word on merit increases and bonuses from earlier in the summer. While this would be unprecedented show of loyalty to Touchdown Jesus, it probably wouldn’t do much for the morale of the firm.


Gridiron failure aside, it’s our understanding that more than a few people are getting antsy over the compensation news and now that KPMG has announced the new partners, the only thing left is to share the shockingly good or heart-wrenchingly disappointing news to all the mini-Flynns.

We invite those with first-hand knowledge, well-researched theories or wild-ass guesses to share their thoughts on KPMG’s eagerly awaited compensation news. And of course, keep us updated with any weepy communication from John. That is, if he managed to get out of bed this morning.

Accounting News Roundup: McConnell’s “Small Business” Definition Includes Obama; Oprah Picking Up Taxes on Aussie Trip Giveaway; Deloitte’s Holiday Outlook | 09.20.10

Obama Among `Small Businesses’ Bearing Share of Tax on Wealthy [Bloomberg]
“Senate Republican leader Mitch McConnell says President Barack Obama wants to subject half of all small-business income to a tax increase, a move that he says would strike a blow at the U.S. job-creation engine.

McConnell’s numbers only add up if you consider people like billionaire investor George Soros, most movie stars and Obama himself small-business owners, tax experts say.

That’s because the lawmaker is basing his figure on a broad definition of the term that experts say includes authors, actors and athletes who employ few if any workers. It also encompasses businesses that many people wouldn’t consider small, such as Soros’s hedge-fund firm and major law partnerships.”

What Should We Do With the Estate Tax? [WSJ]
“any believe Congress will tackle the estate-tax question in the weeks before it adjourns, along with a slew of other tax matters. What’s likely to happen? Many think lawmakers will return the estate tax to its 2009 level—a $3.5 million exemption per individual and a top rate of 45%—and possibly raise the exemption. Heirs of those who die in 2010 may also get the choice of using 2009 rules. If lawmakers don’t step in, the tax will return in 2011 with a $1 million exemption per individual and top rate of 55%.”

Oprah — I’ll Pay the Taxes for My Aussie Giveaway [TMZ]
Locking up sainthood: “TMZ spoke with Larry Edema from Michigan — who was selected to be in the audience on Monday for Oprah’s big giveaway — and dude tells us Winfrey had a certified public accountant on hand to address the tax issue right after the taping.

Edema says the CPA informed the group that all taxes associated with the trip would be “handled by the Oprah show,” so the trip would truly be 100% free.”

BP oil spill well effectively dead, says US [FT]
“The US authorities pronounced BP’s blown-out Macondo well in the Gulf of Mexico ‘effectively dead’ on Sunday, 152 days after the explosion on the Deepwater Horizon drilling rig that caused the world’s largest accidental offshore oil spill.

The announcement ends the 5m barrel leak, which sparked fury among the US public and politicians, but may eventually be seen to have had only a marginal effect on the global energy industry.”


Your Coming Tax Cut (or Not) [NYT]
The Times breaks things down, in gray lady fashion, if all of the tax cuts are extended.

Deloitte Forecasts a 2 Percent Increase in Holiday Sales [PR Newswire]
Deloitte Downer.

Feds charge man shot by IRS agent in San Francisco [AP]
“Investigators say the IRS agent, 36-year-old Dena Crowe, was putting things into her car outside her home in the Bayview-Hunters Point neighborhood when she was confronted by a teen demanding money and Higginbotham pointing a shotgun at her.

Authorities say Crowe identified herself as an agent and fired her .40-caliber semiautomatic handgun at the suspects, who then fled on foot.”

The Kansas City Chiefs Figured It Was About Time They Hired a CFO

You figure someone has to determine whether or not the Hunt Family should vote to lock the players out next year.

The Kansas City Chiefs have hired Dan Crumb as their chief financial officer, the team reported Friday.


Plus, dude is a CPA so we like the move. The real question is, are the Chefs for real?

Crumb has a bachelor’s in finance from the University of New Orleans and an MBA from Tulane University. He is a certified public accountant and a member of the American Institution of Certified Public Accountants.

The Chiefs did not have a CFO before Crumb’s appointment. Crumb’s hiring comes two days after the Chiefs announced that Denny Thum had stepped down as president and that Chairman Clark Hunt had taken the title of CEO.

“Dan has a proven track record of success as a financial officer, and his leadership and experience make him a key addition to our business operations,” Hunt said in a release.

Kansas City Chiefs add a new CFO to executive roster [Kansas City Business Journal]

Wherein We Try to Make Sense of Deloitte’s Purported Hiring Spree

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All right people, we’re going to talk about something that’s been bugging us all week – Deloitte’s big hiring spree announcement.

If you’ve already put the story right out of your mind, Deloitte Global CEO Jim Quigley announced earlier this��������������������would be hiring 50,000 lucky men and women a year over the next five years. At least that’s what we initially thought.

The PR machine was in full force as Quigs was mentioned in several publications all over the world touting the hiring plans in addition to big revenue numbers that might – MIGHT! – put them ahead of newly branded PwC for the biggest of the Big 4.


The problem is that the earliest report, from the Financial Times stated the following:

Deloitte Touche Tohmatsu, the global accounting firm, said on Monday that it would hire an average of 50,000 workers a year during the next five years as it revealed strong revenues.

[…]

Deloitte employs 170,000 people worldwide and said on Monday that it expects to add 250,000 new workers during the next five years as it looks to expand its services and geographic reach.

There is no room for misinterpretation there. The FT reported that Deloitte will add 250k new people to its firm. Nowhere in that report did they take into account (or think to ask) how those people would be added or how attrition, layoffs and partner retirement would affect those numbers. It was simply stated, “Deloitte is more or less adding the city of Lexington, Kentucky to its workforce.”

Our friends at FINS did some digging on these numbers and thought to ask a few more questions:

That’s almost 140 new hires a day.

By 2015, the company expects to grow to 225,000 total employees from its current roster of 170,000, accounting for standard industry turnover, retirements and natural attrition.

According to CEO Jim Quigley, Deloitte is hiring across all areas: consulting, tax, audit and financial advisory services. For FY 2011, Deloitte is looking to hire in all regions, but it expects growth in priority markets like China and India. Both recent graduates and experienced professionals will be targeted in the hiring bonanza.

[…]

In a shaky economy — in any economy, for that matter — it would perhaps seem foolhardy to add so many new hires. But, the firm has had a “successful year despite challenging economic conditions,” Quigley said. “Deloitte’s member firms have experienced growth, even double digit growth in certain markets, so we feel well-positioned to continue this trend in FY11.”

Okay, so whether the FT was credulous or just plain didn’t think to ask any follow up questions is unknown but we are still hella-skeptical about Deloitte’s math here. They’re still claiming that they will add 55,000 global employees in five years. The problem is, you didn’t bother telling anyone exactly how you plan to do that, other than the boilerplate CEO statements offered up.

Just for the sake of argument, say the firm does add the NET 55k warm bodies that it claims. It’s pretty obvious that not many of these jobs are coming to the United States. Plus, this won’t be purely organic growth.

Looking at Deloitte’s press release, it’s pretty obvious that consulting is the only practice growing and BRIC and emerging markets are the only regions where the firm is seeing meaningful growth:

Geographic results (aggregate, in USD):

• Asia Pacific revenues grew 9 percent, making it the fastest-growing region for the sixth consecutive year. Member firms achieving growth in excess of 20 percent included Korea and India. Deloitte China grew 8 percent. Market share of the Fortune Global 500 grew by 2 percentage points in the Asia Pacific region. Deloitte member firms also served some of the largest IPOs in these markets.

• The Americas revenues grew 4 percent. Brazil grew in excess of 20 percent. Deloitte United States grew 3 percent.

• EMEA revenues declined 3 percent. Southern Africa grew 22 percent. The Middle East grew 15 percent.

Business and industry results (aggregate, in USD):
• Audit revenue declined 1 percent while market share of the Fortune Global 500 grew by 1 percentage point.

• Consulting revenue grew 15 percent.

• Financial Advisory revenue declined 2 percent.

• Tax revenue declined 5 percent.

• Industry: Public sector revenues increased 38 percent compared to the prior year. Financial Services and Manufacturing were essentially flat, which represents a significant rebound from last year’s double-digit declines.

As far as the “public sector,” everyone is aware that these were boosted by last year’s acquisition of BearingPoint, so after that plateaus, then what? And speaking of acquisitions – something that Barry Salzberg has gone on record about – this could be part of the headcount boom equation but that’s still makes for funny math.

But increase your people by nearly a third organically? We’re not buying it, Deloitte. Not that you were selling it but you certainly got a lot of panties to drop with some hot rhetoric. Will they make the numbers? Who knows but there are at least three other firms out there that will be fighting you to the death for the business that will finance that growth. Good luck with that.